Tax Cases Weekly Round-Up: 3 September To 9 September, 2023
Mariya Paliwala
11 Sept 2023 4:00 PM IST
Delhi High Court Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20% Case Title: Jindal Stainless Ltd Versus DCIT The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%. GST | Show Cause Notice Must Clearly Indicate Reasons For Which Registration Cancellation Is Proposed: Delhi High Court Case Title:...
Delhi High Court
Delhi High Court Limits Adjustment Of Tax Refunds Against Disputed Demands At 20%
Case Title: Jindal Stainless Ltd Versus DCIT
The Delhi High Court has limited the adjustment of tax refunds against disputed demands to 20%.
Case Title: M/S Frequent Logistics Services PVT. LTD. v. Commissioner Goods and Service Tax Department And ORS.
Delhi High Court has recently set aside show cause notice proposing to cancel GST registration and the consequential order cancelling the same on the ground that reasons for cancelling registration of assesee were not clearly mentioned in the show cause notice.
Case Title: Gopal Corporates LLP Versus Commissioner Delhi-East
The Delhi High Court has upheld the validity of Rule 8 of the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules 2010 (CTUT), which deals with the alteration in the number of operating packing machines.
Case Title: PCIT Versus Surya Agrotech Infrastructure Limited
The Delhi High Court has held that undisclosed income taxed in the hands of flagship companies cannot be again subjected to tax in the hands of assessee companies.
Bombay High Court
Case Title: Ashok Commercial Enterprises Versus Assistant Commissioner of Income Taxation
The Bombay High Court has held that a write-off of a bad debt cannot be held to be an asset under section 153A(1) of the Income Tax Act, 1961.
Case Title: Darshana Anand Damle Versus DCIT
The Bombay High Court has quashed the reassessment notice and held that the granting of a licence for the purpose of development of the flats and selling the same could not be said to be granting possession.
Karnataka High Court
Case Title: United Spirits Limited Versus Assistant Commissioner Of Income-Tax
The Karnataka High Court has held that no further demand can be made for recovery of the balance amount since a fresh assessment is barred. In other words, the tax paid by the assessee must be accepted as it is, and in the event of the tax paid being in excess of the tax liability duly computed on the basis of the return furnished and the rates applicable, the excess shall be refunded to the assessee.
Calcutta High Court
Case Title: Monotosh Saha Versus Special Director, Enforcement Directorate, Foreign Exchange Management Act
The Calcutta High Court has held that the accused is entitled to cross-examine natural persons whose statements were recorded under the Customs Act, 1962.
Case Title: Himangshu Kumar Ray Versus State Of West Bengal
The Calcutta High Court has held that the GST department cannot issue notice to the advocate appearing on behalf of the assessee.
Patna High Court
Case Title: Sita Pandey Versus The State of Bihar
The Patna High Court has imposed a cost of Rs. 5,000 on officers for surreptitiously making tax recoveries contrary to GST enactment.
Allahabad High Court
The Allahabad High Court has held that the Goods and Service Tax Act, 2017 is a complete code in itself and there can be no deviation from the text of the Act, Rules and Forms.
ITAT
ITAT Directs Dept. To Allow Interest Paid On Borrowings Against FD Income If Reasonable Link Exists
Case Title: D D & Co. Versus Asst. Commissioner of Income-tax
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT), while remanding the matter back to the department, held that the interest paid on borrowings is allowable against FD income if any reasonable link exists.
Interconnectivity Utility Charges Can’t Be Taxed As Royalty Under India-Austria Tax Treaty: ITAT
Case Title: M/s. Al Telekom Austria Versus The Deputy Commissioner of Income Tax
The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has held that interconnectivity utility charges (IUC) cannot be taxed as royalty under the India-Austria Double Taxation Avoidance Treaty (DTAA).
No Income Tax Payable On Bonus Shares Under The Head ‘Income From Other Sources’: ITAT
Case Title: DCIT Versus Smt Aruna Chandhok
The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that income tax is not chargeable on bonus shares under the heading ‘income from other sources’.
Case Title: Naresh Manakchand Jain Versus ACIT
The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has directed the AO to share information on all persons allegedly involved in the racket of money laundering.
CESTAT
Case Title: M/s Paharpur Cooling Towers Ltd. Versus Commissioner of Service Tax, Kolkata
The Kolkata Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the excess amount paid in service tax can be adjusted against the short payment in education cess.
Case Title: Shyam Singh Versus Commissioner Custom
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the licence cannot be revoked on a mere charge of misdeclaration and undervaluation of illegal imports.
Case Title: M/s. Benign International Versus Commissioner of Customs
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that it quashes confiscation of goods, imposition of redemption fines, penalties, and customs duty demands in the absence of the Central Leather Research Institute, Chennai (CLRI) Report.
Manufacture Of Barges, Cenvat Credit Available On Steel Used: CESTAT
Case Title: Shreeji Shipping Versus Commissioner of Central Excise & ST, Rajkot
The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that cenvat credit is allowable on steel materials used in the manufacture of barges.
